Fintech Paytm Debunks Data Leak Claims

Indian multinational technology company Paytm has come out to debunk a report that its Payments Bank’s data was leaked to Chinese companies saying that these reports are “completely false and sensationalizing.”

The company’s shares plunged as much as 14.7 percent to $8.6 per share following this report that it had suffered a data leak. The company which has debunked this report assured investors that all is well clarifying all that investors need to know concerning the matter.

Bloomberg had earlier reported that the platform was unable to add new customers because it broke some rules in India by allowing data to be shared with Chinese-based business entities that have a stake in the company’s Payments Bank.

Per a spokesperson, Paytm Payment Bank is a “homegrown bank and is fully compliant with RBI’s directions on data localization. All of the Bank’s data resides within the country. We are true believers of the Digital India initiative, and remain committed to driving financial inclusion in the country.”

Last week Friday, India’s apex bank – The Reserve Bank of India, barred Paytm Payments Bank from taking in new users citing “material supervisory concerns.” In its statement, the apex bank said that “The bank has also been directed to appoint an IT audit firm to conduct a comprehensive System Audit of its IT system. Onboarding of new customers by Paytm Payments Bank Ltd will be subject to specific permission to be granted by RBI after reviewing report of the IT auditors.”

The company which lost about $10 billion from its valuation following the incident has made a slight recovery. It believes that the action of India’s Reserve Bank will “materially impact Paytm’s overall business.”

Macquire Capital, a brokerage firm, however, says that the latest incident is unlikely to affect Paytm’s business and that it will only impede its chances of acquiring a license and upgrading to the status of a bank which Paytm is eligible to apply for in May.